Author: Romeo Alvarez

Romeo Alvarez is a senior equity analyst at William O’Neil + Co., a registered investment advisor serving 400 top-performing institutional portfolio managers worldwide. The firm employs 150 associates in Los Angeles, New York, Boston, and London. Based in the firm’s Los Angeles office, Mr. Alvarez is a senior equity analyst covering the Americas region and a member of the Global Focus List Committee, which approves all equity recommendations for developed, emerging, and frontier markets. Romeo also selects equity initiations to be covered in the Technology sector and regularly reports to clients on innovation and technology developments in Trend Watch. Mr. Alvarez earned a B.S. in Business Economics from the University of California, Riverside, and an MBA with a focus in Finance from Loyola Marymount University, Los Angeles.

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • Brazil’s Bovespa gained 1.6% last week and reclaimed support at the 50-DMA. The index remains in a Rally Attempt. We recommend clients wait for a follow-through day to add risk in Brazilian equities.
  • Mexico’s benchmark index declined 1.2% last week. It remains in a Rally Attempt. We recommend clients wait for a follow-through day to add risk in Mexican equities.
  • The total number of Focus List ideas in the LATAM region remains at six. Smartfit (SED.BR; SMFT3:BZ), Nu Holdings (NU) and Coca-Cola Femsa (KFBL.MX; KOFUBL:MM) are forming the right side of their respective bases.
  • Stocks of interest: Embraer (EA3.BR; EMBR3:BZ), El Puerto de Liverpool (PLC.MX; LIVEPOLC:MM), Gruma (GRM.MX; GRUMAB:MM), Caixa Seguridade (CS6.BR; CXSE3:BZ) and Cury Construtura (CCE.BR; CURY3:BZ).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark continues to chop around and remain below multiple resistance levels including its 21-DMA
($81) and 100-DMA ($83). Support is at its rising 200-DMA (~$77), which coincides with the January lows. Quantitative metrics are
mixed, with an Acc/Dist Rating of D along with a RS line that has steadily declined off February highs. Large-cap leaders MSFT,
NOW, SNPS, CRM, and CRWD are attempting to bounce but remain below key moving averages/resistance. Eight of the 11 software
groups in the O’Neil 197, have declined in Group Rank over the last four weeks with Security (#95) and Design (#170) showing the
sharpest decline. Gaming (#184) and Desktop Software (#191) are ranked the worst. We recommend a risk off approach to the IGV
and its constituents as the index has breached key moving average supports. Trim weak ideas breaching logical levels of support on
declining relative strength.

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • Brazil’s Bovespa gained 1.1% last week. The index was shifted to a Rally Attempt as it held above recent lows. We recommend clients wait for a follow-through day to add risk in Brazilian equities.
  • Mexico’s main benchmark gained 3.5% last week and retook its 50-DMA. It was shifted to a Rally Attempt. We recommend clients wait for a follow-through day to add risk in Mexican equities.
  • The total number of Focus List ideas in the LATAM region remains at six. Coca-Cola Femsa (KFBL.MX; KOFUBL:MM) is forming the right side of a stage-one cup base.
  • Stocks of interest: Gruma (GRM.MX; GRUMAB:MM), Porto Seguro (PSO.BR; PSSA3:BZ) and Banco del Bajio (BJI.MX; BBAJIOO:MM).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark gained ~3% last week and bounced off its recent low ($78), which is slightly above its 200-
DMA ($76). The index faces resistance at the 100-DMA (~$83), followed by the 50-DMA (~$84). Quantitative metrics have improved
from the prior week but remain subdued, with an Acc/Dist Rating of D- along with RS line that has steadily declined off February
highs. Of the 11 software groups, only three are ranked in the top 50 of the O’Neil 197, including Database (#2), Edu/Media (#24), and
Financial (#36). Nine of the 11 groups have declined in group rank over the last four weeks, with Security (#85), Design (#147), and
Medical (#160) showing the sharpest decline. We recommend a selective approach to the IGV and its constituents as the index has
breached key moving average support. Trim weak ideas breaching logical levels of support on declining relative strength. Look for an
alternative entry in stocks that are retaking key moving averages with a constructive technical profile. Key earnings to monitor this
week include FL-stock NET (5/2), along with PCOR, TENB, CTSH, FTNT, and CYBR.

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • Brazil’s Bovespa declined 0.65% last week. The Brazilian market was moved to a Downtrend from an Uptrend Under Pressure. We recommend clients avoid adding risk in Brazilian equities.
  • Mexico’s benchmark index declined 1.2% last week. The Mexican market was moved to a Downtrend from an Uptrend Under Pressure. We recommend clients avoid adding risk in Mexican equities.
  • Last week, we removed Banco BTG (BPC.BR; BPAC11:BZ) and Mercadolibre (MELI) from the Focus List, reducing the number of Focus List ideas in the LATAM region to six.
  • Stocks of interest: Grupo Mexico (GME.MX; GMEXICOB:MM), Grupo Aeroportuario del Sureste (AUS.MX; ASURB:MM), Qualitas (QCC.MX; Q*:MM), Caixa Seguridade (CS6.BR; CXSE3:BZ) and Cielo (VIS.BR; CIEL3:BZ).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark declined ~5% and breached support at its 100-DMA (~$83) on above average volume.
The next level of support is at the rising 200-DMA (~$77), which coincides with the January lows. Quantitative metrics are weakening,
with an Acc/Dist Rating of D- along with an RS line that has steadily declined off February highs. Multiple leaders – CRWD,
FICO, NOW, SNPS – have broken below their respective 100-DMA and are testing the next level of support. Nine of 11 software
groups in the O’Neil 197, have declined in group rank over the last four weeks with Security (#97), Design (#148), and Medical (#167)
showing the sharpest decline. We recommend a risk off approach to the IGV and its constituents as the index has breached key
moving average supports. Trim weak ideas breaching logical levels of support on declining relative strength.

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • Brazil’s Bovespa declined 0.7% last week. The index remains in an Uptrend Under Pressure with five distribution days. We recommend clients selectively add risk in Brazilian equities.
  • Mexico’s benchmark index declined 2.6% last week. The index was shifted to an Uptrend Under Pressure from a Confirmed Uptrend as it breached support at the 50-DMA. We recommend clients selectively add risk in Mexican equities.
  • The total number of Focus List ideas in the LATAM region remains at eight.
  • Stocks of interest: Petro Rio (HRT.BR; PRIO3:BZ), Klabin (KLU.BR; KLBN11:BZ) and Grupo Aeroportuario del Sureste (AUS.MX; ASURB:MM).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark pulled back ~1.6% and is currently testing support at its 100-DMA ($82). Below the 100-
DMA, the IGV is vulnerable to a further downside with no firm level of support until the rising 200-DMA ($76), which is 7% lower. RS
line is in a broader downtrend since peaking in early February. Acc/Dist Rating and Up/Down Volume ratio of 1.1 were decent. Like the
IGV, standout ideas – MSFT, NOW, DDOG – are consolidating along key moving average support. Of the 11 software groups in the
O’Neil 197, Database (# 2, MSTR) continued to remain strong, followed by Edu/Media (#26, DUOL). Spec-Enterprise (#46, HUBS)
had the biggest improvement over the past four weeks. All the remaining groups have declined in rank over the last four weeks, with
Security (#81), Design (#134), and Medical (#173) showing the sharpest decline. We recommend a cautious approach to the IGV and
its constituents as the index is trading below its 50-DMA and testing 100-DMA support. Trim extended ideas and those breaching key
support levels with declining relative strength.

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • Brazil’s Bovespa declined 1.0% last week. The index remains in an Uptrend Under Pressure with three distribution days. We recommend clients selectively add risk in Brazilian equities.
  • Mexico’s benchmark index gained 1.3% last week and was shifted to a Confirmed Uptrend. It currently has two distribution days. We recommend clients add risk in Mexican equities.
  • The total number of Focus List ideas in the LATAM region remains at eight. Banorte (GTB.MX; GFNORTEO:MM) is forming the right side of a stage-one cup base.
  • Stocks of interest: Grupo Aeroportuario del Sureste (AUS.MX; ASURB:MM), Qualitas (QCC.MX; Q*:MM), Vibra Energía (PRB.BR; VBBR3:BZ), PetroRio (HRT.BR; PRIO3:BZ), Porto Seguro (PSO.BR; PSSA3:BZ), Inter (IP9.BR; INBR32:BZ) and Gps Part. (GPE.BR; GGPS3:BZ).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark has continued to consolidate in a flat base for the last several weeks and is currently
trading slightly below its 50-DMA ($85) with the next level of support at the rising 100-DMA ($82). Quantitative metrics are subdued,
with an Acc/Dist Rating of C+ along with a RS line that has steadily declined off February highs. Of the 11 software groups, only three
are ranked in the top 50 of the O’Neil 197 including Database (#1), Financial (#34), and Edu/Media (#37). The majority of the remaining
groups have declined in rank over the last four weeks with Security (#63), Design(#116), and Medical (#159) showing the sharpest
decline. We recommend a cautious approach to the IGV and its constituents as the index is trading in a flat base below its 50-DMA.
Trim extended ideas and those breaching key support levels with declining relative strength.